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FASH 2073 Case Study & Field Work (10%) Objectives: · To observe where fashion retail stands today, and see typical transaction patterns · To understand the customer-salesperson relationship within the context of retailing · To recognize how store layout, dynamics, and atmosphere can affect customer decisions, and determining how salespeople can contribute to sales-conducive environments · To reflect on the important retail sales techniques that will help students assist customers better and make them better salespeople Deliverables: Part 1 – CASE STUDY (Total of 100-150 words): · Read the “RW Case Study” (textbook pages 64 - 65) and answer the following four questions. · Ensure your responses are reflective and descriptive, substantial, yet concise (200 – 250 words). 1) What type of compensation would you prefer and why? 2) What type of sales approach leads to a successful sale? Part 2 – FIELD WORK (Total of 300-500 words): · After reading Chapter 3, for Field Work address the following four scenarios (A, B, C, and D). · Ensure your responses are reflective and descriptive, substantial, yet concise. Scenario A: Think of a recent time when you went into a clothing store and were approached by a salesperson (or recall your recent visit if COVID-19 prevents you from doing so). Recall how the salesperson greeted you, your reaction, and whether he or she answered your questions. Provide a brief analysis of the sales transactions and how you feel the salesperson could improve. Scenario B: Go to a local department store (or recall your recent visit if COVID-19 prevents you from doing so), and visit one of the high-end departments (e.g. The Bay, Holt Renfrew, Nordstrom, Saks Fifth Avenue etc). Browse through the items, and wait until a salesperson approaches you. Ask the salesperson complex questions about the product, and analyze his or her product knowledge. Analyze how his or her product familiarity or lack thereof affects your decision to buy. Overall Performance Indicators and Success Criteria: ------- / 10 Neatness, Presentation, and Formatting ------- / 25 Spelling, Punctuation, Grammar, Sentence Structure, and Writing Style ------- / 20 Completeness ------- / 45 Quality of Content _____________________ _____ /100 Marks = _____ /10% Weight Objectives · Gain an understanding of retail selling and sales management in both brick-and-mortar and virtual settings. · Discover the career opportunities available for retail sales-people and sales managers. + Observe where fashion retail stands today, and see typical transaction patterns. · Understand the customer– salesperson relationship within the context of retailing. + Learn the important retail sales techniques that help you assist customers better and make you a better salesperson. · Explore the role of social media in retail sales and management. · Recognize how store layout, dynamics, and atmosphere can affect customer decisions, and determine how salespeople can contribute to sales- conducive environments. · Examine the importance of product knowledge in retail sales. · Appreciate why retailers need to understand and be tolerant of and sensitive to different cultures and local retail environments when they work in international markets. Overview This third chapter reviews how sales in the fashion industry functions in the real world of retail. Forget the idea of a salesperson asking, “May I help you?"—it doesn't work. Today's fashion retail world is fast paced and based on quick transactions. Glamorous advertisements and slick commercials are the main selling tools. We explore the anatomy of retail sales today, explain how a retail fashion salesperson fits in today's retail sales context, and describe the career opportunities this field offers. We also recommend customer retention techniques and convey the vital need for salespeople to be knowledgeable about the products they sell or services they offer. Lastly, we discuss the international aspect of fashion retailing. RW Dictionary Retailing The process of selling to the end user—the person who will be actually using the product. Introduction Many of us have experienced something like the hypothetical scenario that follows. A person goes into a store because he or she needs to buy a shirt, and the salesperson immediately approaches and asks, “May I help you?” The salesperson doesn't give up and insists on helping. Some of the usual replies that follow the dreaded question include “I'm just looking,” “No thanks,” “Oh, I'm fine,” or even “I don't need help.” A person will say just about anything to brush off the annoying intrusion—and it works. The salesperson usually disappears. However, say the person in our hypothetical example resumes his or her search and finally finds the needed item only to discover that it is not the right size and there is no price tag. Now the customer can't find the salesperson. Moreover, say the person is in a hurry. Most likely, the person will convince him- or herself that the item is not quite right and leave without making a purchase. The result is a lost sale for the salesperson and an unfulfilled desire for the now dissatisfied customer. This example involves only one customer and one salesperson. However, if this type of situation repeats over time it can easily cause sales to plummet and shut down a retail store. Retail employees who are in direct contact with their customers are referred to by various titles, depending on the companies for which they work as well as other factors. For example, Target stores call their retail employees team members, Walmart calls them sales associates, and traditional department stores and boutiques call them either sales associates or salespeople. In some retail stores, all employees who work in sales positions are referred to by the same title. In other retail stores, employees who work in sales positions are referred to by various titles (even within the same store). Sales associates or team members who work in self-selection retail stores are primarily service-oriented personnel who do not actually sell items and usually don't have commission-based programs in place. They do answer questions that customers may have, assist customers in locating items, and check out customers at cash registers. Self-selection retailers depend on their brand names, advertisements, and visual displays to sell their goods. Sales associates in traditional department stores such as Macy's, Nordstrom, and Bloomingdale's assist customers with all items regardless of price; they must be prepared to sell bargain-priced merchandise and high-ticket items such as designer brands, menswear, evening dresses, jewelry, leather, shoes, and home furnishings. Many customers expect salespeople at such stores to provide them with guidance and unbiased information. Retail salespeople work on many different compensation plans. They receive hourly wages, annual salaries, salaries plus commissions, or strictly commissions. Macy's, Nordstrom, and Bloomingdale's have incentive programs to compensate their sales associates with commissions on goods sold. RW Figure John Wanamaker Merchant, born in Philadelphia, Pennsylvania. After a few years as secretary of the Philadelphia Young Men's Christian Association, he and his brother-inlaw, nathan Brown, opened a men's clothing store called Oak Hall (1861). In 1869, a year after Brown's death, Wanamaker opened the more fashionable John Wanamaker & Co. He had his brothers manage the store in 1876, in time for the centennial, so he could open the Grand Depot, a huge dry goods and men's clothing store located in a former Pennsylvania Railroad depot. In 1877, unable to attract other merchants to open shops under his roof, he opened a number of specialty shops that flourished after one year. He expanded into new York City (1896) and continued to enlarge his innovative department stores by advertising effectively in newspapers and implementing a money-back guarantee. He is generally credited as spearheading the advent of the traditional department store concept. Let's examine another scenario: A customer enters a clothing store and browses through some expensive suits. This time, the salesperson does not ask, “May I help you?” The trained salesperson observes the customer, notes whether the customer is leaning toward a specific style, and waits for the customer to try something on before approaching. By following this strategy, the salesperson is now armed with product information and can strike up a meaningful conversation with the customer instead of relying on a trite question. The majority of consumers identified sales floor assistance as an important or very important factor in influencing loyalty to a particular retailer. The most common reason cited for not shopping with a particular retailer again is poor service from store floor sales associates. Today, retailers have the power to increase the time sales associates spend on the sales floor, improve sales volumes and secure customer loyalty, without losing productivity.[1] Besides helping customers, sales associates learn how to deal with people and have an opportunity to grow within the field of retail sales. Sales associates who put extra effort into learning about the products that they sell and have high transaction volumes have a better chance of being noticed by management and offered sales positions in high-end departments and perhaps even sales management and executive positions. Career Opportunities According to the U.S. Department of Labor,[2] there are 4.3 million retail salespeople and sales associates in the United States. Throughout the current decade, many baby boomers will reach retirement age and leave the workforce. Since baby boomers constitute about 60 percent of today's workforce, this will create a tremendous need for new employees to fill positions in sales and sales management. Retail selling has great opportunities for college graduates. One reason is that this field is in dire need of salespeople who know how to deal with others and have a good work ethic. College graduates typically have an edge in this respect since they learn about ethics and the importance of good communication skills while they are in school. Entry-level retail sales positions give recent graduates the opportunity to learn about the companies for which they work, customers, and the marketplace. Retail salespeople are the eyes and ears of the retail business (they are also on the front line), and being in direct contact with the customers gives them firsthand knowledge of their consumers' wants and needs, which is the very foundation of all business transactions. Gaining sales experience enables salespeople to acquire the knowledge and skills necessary for promotions. Retailers promote experienced employees to executive positions, which offer higher salaries. Retail managers are constantly looking for competent people who have risen through the ranks and have an intimate knowledge of the workings of the business at all levels. College graduates can use retail sales as a springboard for careers in retail buying, marketing, and management. The field of retail sales also offers job security—brick-and-mortar retail environments do not outsource jobs, so you can always count on finding sales positions at all levels available in the United States. Certainly, the Internet has encroached on this environment somewhat, but most people want to see, feel, or try on clothing, for example, before buying it, and that's not likely to change soon. Positions in